Special deduction under section 34A of the ITA (double deduction) for inhouse R&D expenditure

Incentive Category

Scope of Funding

Encourage companies to conduct in-house R&D activities

Application Method

i. Type of R&D form: Borang 1
ii.The guidelines titled Guidelines on The Application Procedure for A Special Deduction in Respect of A Qualifying Research and
Development Activity dated 29.12.2021 that can be downloaded under Technical Guidelines from the Inland Revenue Board of Malaysia’s official portal at www.hasil.gov.my.

Qualification Criteria

i. Undertake an R&D activity which fulfils the definition of R&D, and its qualifying criteria to qualify as a qualifying R&D activity;
ii. A resident for tax purposes in Malaysia;
iii. Carrying on a business in Malaysia;
iv. Obtain an approval for the R&D activity from the Director General of Inland Revenue of Malaysia (DGIR)

Contact Information

Ketua Pengarah Hasil Dalam Negeri
Lembaga Hasil Dalam Negeri Malaysia
Jabatan Dasar Percukaian
Aras 17, Menara Hasil
Persiaran Rimba Permai, Cyber 8
63000 Cyberjaya Selangor.
[For the attention of: Pengarah Jabatan Dasar Percukaian]

Fax

03-83137811

Telephone

03-83138888

Website

https://www.hasil.gov.my/en/legislation/guidelines/

Last modified

20 June 2023

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